Koko: Eskom faces challenges but won't go down same road as Venezuela

Koko: Eskom faces challenges but won't go down same road as Venezuela

- Matshela Koko has said that Eskom has liquidity problems but expressed confidence that they could be resolved

- However, he said he did not think the current leadership was on the right path to saving the embattled parastatal

- He added that South Africans would have to "tighten our belts"

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Former Eskom CEO, Matshela Koko, says the power utility faces challenges but that it won't go down the same road as Venezuela.

He made the comments in an interview with Eusebius Mckaiser.

However, Koko said that he believed that some of the policies currently being pursued by Eskom's leadership would not be successful.

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Koko acknowledged Eskom's major debt problems, but said he did not think it would lead to the parastatal's collapse.

He referred to Venezuela, which has experienced frequent and long-lasting energy blackouts over the last few months as a result of political and economic turmoil.

However, Koko himself has been blamed for some of Eskom's current financial woes. For example, he has been accused of corruption and entering into shady contacts. 

Additionally, there are allegations that Koko promised a Swiss engineering company lucrative contracts, provided that it would subcontract work to a company co-owned by his stepdaughter.

READ ALSO: Soweto residents refuse to pay Eskom - "ANC promised free electricity"

In the interview, Koko's advice to South Africans was to "tighten our belt".

However, many citizens have expressed frustration at the recently-approved electricity tariff hikes that Eskom will implement.

These hikes will likely drive up the cost of living, meaning that many South Africans will be forced to work more carefully with their budgets as a result of Eskom's failures, whether they want to or not.

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Source: Briefly.co.za

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